I thought the dominant public opinion is government agencies are staffed with mediocre engineers. Not even because of any moral concerns, just because of bureaucracy and low pay.
Agreed, but we still think of the CIA and NSA on a technical level as being capable of unparalleled surveillance, crypto cracking, and other general hackery and engineering to maintain its power. Perhaps that's part of the propaganda. With that said, I imagine much of that is possible with backdoors to mass consumer data like Facebook which is actually collected via ingenious (but unethical) talent in Silicon Valley.